--- title: "Skyworks guides the Qorvo business it bought 10% below its September run-rate, on $2.47 billion of debt" description: "The first combined forecast values the Qorvo business Skyworks bought at 10% less than it really ran in September, once an extra week is stripped out, and the balance sheet behind it now carries $2.47 billion of debt." publisher: "The Inference" section: "Chips" published: 2026-11-06T16:12:31.929Z modified: 2026-11-06T16:12:31.929Z canonical: https://theinference.org/article/skyworks-guides-the-qorvo-business-it-bought-10-below-its-september-run-rate-on-2-47-billion-of-debt language: en keywords: "Chips, Earnings, Guidance, M&A, Debt" --- # Skyworks guides the Qorvo business it bought 10% below its September run-rate, on $2.47 billion of debt > The first combined forecast values the Qorvo business Skyworks bought at 10% less than it really ran in September, once an extra week is stripped out, and the balance sheet behind it now carries $2.47 billion of debt. [Skyworks](https://theinference.org/markets/companies/skyworks-solutions) closed its purchase of [Qorvo](https://theinference.org/markets/companies/qorvo) on October 5 [2]. Eight days into the new fiscal year, [the first combined forecast put a number on what the combined radio-frequency chipmaker will earn: $1.80 billion to $1.90 billion for the December quarter](https://trendandticker.com/markets/semiconductors/skyworks-swks-q4-guides-1-85-billion-first-qorvo-quarter). [2] ## The half that is shrinking The $1.85 billion midpoint splits into about $1.07 billion from legacy Skyworks and $780 million from legacy Qorvo. [2][4] That Qorvo figure is the story. Qorvo did $937 million in its September quarter, but roughly $70 million of that was an extra week in the calendar [3]. Strip the week out and the guide sits about 10% below the real run-rate [3]. CFO Philip Carter was blunter: [Android revenue inside the acquired business fell more than 20% sequentially](https://www.bullished.co/skyworks-ceo-says-its-largest-customer-wont-just-hand-us-business-after-qorvo-deal-3a9f6a16/), and should be under 10% of the smartphone business by fiscal 2027. [3] *Chart: **Skyworks guides Qorvo's business down while its own edges up** Column chart comparing September quarter revenue with the December quarter guide for legacy Skyworks and legacy Qorvo, in millions of dollars.* *Skyworks guides Qorvo's business down while its own edges up [2][4]* [Legacy Skyworks, by contrast, is guided up about 2%](https://tickerbyline.com/swks/skyworks-qorvo-first-combined-outlook-sales-synergies/) [4]. The combination is roughly 3% smaller than the week-adjusted September base. [4] The stock [fell 5.19% to $80.97 on November 4](https://www.tradingview.com/news/gurufocus:bb8226826094b:0-skyworks-stocks-decline-5-2-as-qorvo-integration-starts-with-a-revenue-contraction/); [Goldman Sachs resumed coverage at Sell with a $78 target](https://www.gurufocus.com/news/9168913/goldman-sachs-assigns-sell-rating-on-skyworks-swks-amid-smartphone-market-concerns), citing smartphone dependence. [5][6] ## Who pays, and who holds the paper Qorvo no longer trades. Its former shareholders now hold Skyworks stock, and the balance sheet behind it carries $2.47 billion of debt against $2.61 billion of cash, net cash down to $133 million from $393 million, and free cash flow of minus $61.0 million in the quarter [2]. No dividend was paid, against $105.6 million a year earlier. [2] [S&P affirmed BBB- on November 5 with stable outlook](https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3655534), mid-1x pro forma leverage, and a downgrade trigger above 2x. [1] CEO Phil Brace gave the counterweight: diversified growth markets, the defense and data-center piece that grew 12% to about $2.9 billion, is supply constrained, and $500 million or more of annual cost synergies are targeted [3]. But the largest customer, [Apple](https://theinference.org/markets/companies/apple) at about 62% of September revenue and over half pro forma, "is not going to just hand us business because all of a sudden we're combined." [3] S&P calls the deal a defensive move against [Broadcom](https://theinference.org/markets/companies/broadcom) and [Qualcomm](https://theinference.org/markets/companies/qualcomm). [1] ## The February test From the February call, Skyworks reports smartphone against diversified growth markets only. That split is where holders of the swapped paper will first see which half of the company they own. [3] ## Takeaway Skyworks' first combined guide puts legacy Qorvo about 10% below its week-adjusted September run-rate on $2.47 billion of debt, and the February call's new smartphone-versus-diversified split is where holders of the swapped paper first see which half they own. ## Sources 1. [S&P Global Ratings, Skyworks Solutions Inc. Ratings Affirmed Following Acquisition Of Qorvo Inc., Outlook Stable, 5 November 2026](https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3655534) 2. [Trend & Ticker, Skyworks (SWKS) Q4 guides $1.85 billion first Qorvo quarter, 6 November 2026](https://trendandticker.com/markets/semiconductors/skyworks-swks-q4-guides-1-85-billion-first-qorvo-quarter) 3. [Bullished, Skyworks CEO Says Its Largest Customer Won't 'Just Hand Us Business' After Qorvo Deal, 5 November 2026](https://www.bullished.co/skyworks-ceo-says-its-largest-customer-wont-just-hand-us-business-after-qorvo-deal-3a9f6a16/) 4. [Ticker Byline, Skyworks bought Qorvo. Why does the first forecast point lower?, 5 November 2026](https://tickerbyline.com/swks/skyworks-qorvo-first-combined-outlook-sales-synergies/) 5. [TradingView/GuruFocus, Skyworks Stocks Decline 5.2% as Qorvo Integration Starts With a Revenue Contraction, 5 November 2026](https://www.tradingview.com/news/gurufocus:bb8226826094b:0-skyworks-stocks-decline-5-2-as-qorvo-integration-starts-with-a-revenue-contraction/) 6. [GuruFocus, Goldman Sachs Assigns Sell Rating on Skyworks (SWKS) Amid Smartphone Market Concerns, 4 November 2026](https://www.gurufocus.com/news/9168913/goldman-sachs-assigns-sell-rating-on-skyworks-swks-amid-smartphone-market-concerns) --- Skyworks guides the Qorvo business it bought 10% below its September run-rate, on $2.47 billion of debt — The Inference. Canonical: https://theinference.org/article/skyworks-guides-the-qorvo-business-it-bought-10-below-its-september-run-rate-on-2-47-billion-of-debt